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1. Australian citizenship has been running since 1948 without a Constitutional ability for the Parliament to draft the legislation. By making the claim to any alleged authority in Australia that you are a subject of the Queen of the UK is yours to claim without hinderance or requirement to prove the claim.
2.The average Aussie has been asleep for a long time but that does not mean the rights are lost.
The current passport does reflect that the right of a citizen is under the Commonwealth Constitutional appointed Governor General.
3. If one was to challenge any would be claim of cancellation of citizenship then that claim would be able to be challenged to the Minister responsible. The only restrictions to having dual citizenship is for someone choosing to stand and sit in the Federal Parliament.